Types Of Organisation Structure

Different organizations will have different structures. For example most organisations will have a marketing department responsible for market research and marketing planning. A customer services department will look after customer requirements. A human resources department will be responsible for recruitment and selection of new employees, employee motivation and a range of other people focused activities. In addition there will be a number of cross-functional areas such as administration and Information Technology departments that service the functional areas of the company. These departments will provide back up support and training.

Organizations are structured in different ways:

1. by function
2. by regional area

3. by product e.g. marketing manager crisps, marketing manager drinks

Different Types of Organisation Structure

Entrepreneurial Structure

· This structure is usually for the small business. The owner is the manager and the decision maker. The owner has control over all the aspects of the business and its employees.

FUNTIONAL STRUCTURE

Department in this organisation will be grouped by their function, for example production, sales, marketing, finance and so on.

Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.

Product/Divisional/Departmental Structure

In this structure, it divided the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division

For example each division has a general manager which have below them an entirely separate management structure for production, accounting, human resources and marketing. One general manager exists for Proton cars and another for Proton heavy vehicles, for example. Therefore people are grouped into separate self-contained divisions.

Matrix Structure

In this structure, professionals with a variety expertise are brought together to work on a projects. They report to a number of managers of different projects. It is to share knowledge and personnel to maximize effectiveness.

This type of structure help to decrease the number of people need to be hired since workers are shared between different projects. Time can be saved as those workers share information as they work on different projects. Theoretically, this results in a better product at a lower cost.

Since professionals work on more than one project at a time, they can keep each other informed about progress in other areas of the company. Company will become stronger when different department are working against each other

There are also limitations for this structure.

In-fighting can occur as managers compete for the time and attention of workers that they share.

If a Matrix Structure gets too big, it can be difficult to manage effectively.

Compare to the functional managers, project manager in Matrix Structure may have limited power on the project itself only, whereas the functional manager control over their resources and project areas too. Below is the Matrix Structure chart.

Let take some example to have a clearly understand on Matrix Structure. An employee in marketing department has assigned to product Y. Now he has to report to his product manager and his department manager also.